Committee unanimously approves Vitelli bill on Family Development Account program oversight

Legislation from Sen. Eloise Vitelli, D-Arrowsic, LD 1217 “An Act To Clarify the Oversight of the Family Development Account Program” was approved unanimously by the Legislature’s Innovation, Development, Economic Advancement and Business Committee on Tuesday.

The bill would move administration of the Family Development Accounts (FDA) program from the Finance Authority of Maine to the University of Maine System

“Both organizations are supportive of and engaged in savings, higher education, workforce development, and economic development, and both think that this move will be a positive one for the FDA program,” said Sen. Vitelli. “I’m glad the committee members agree and voted to move this change forward.”

Within the University of Maine System, New Ventures Maine will do the direct work of managing the FDA program. Sen. Vitelli worked at New Ventures Maine for 38 years until her retirement last year.

FDAs are matched savings accounts for income-eligible individuals and families who want to save money to buy a home, pay for education or training, or start or expand a small business. Participating families open a savings account to be used toward their identified goal, and these savings will be matched upon withdrawal for approved purchases. Participants save up to $1000 in their FDA, and the savings get matched 4:1, up to $4000. Savings can occur over as short a time as six months or as long as three years, depending on the person’s budget or goals.

LD 1217 was introduced at FAME’s request.

The bill now goes to the Maine Senate and House for further votes.